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If you belong to the "We don’t publish" team, we recommend reading the article written by Daniela Radikovská for the current issue of Bulletin of the Chamber of Tax Advisors of the Czech Republic, No. 2/2024. 👇
As the Constitutional Court has previously stated, the legal obligation to publish financial statements serves a legitimate aim, as these are documents that allow insight into the financial condition of entities registered in the Commercial Register. These are often essential pieces of information for investors, business partners, other competitors (market participants), or consumers. Nevertheless, the obligation to publish financial statements can, with a relatively high degree of certainty, be considered one of the most frequently neglected obligations in our legal system.
According to an audit conducted by the Supreme Audit Office in 2012, as many as 81% of entities failed to publish their financial statements (or annual reports containing them) for the year 2010 in the Collection of Deeds. Although the Supreme Audit Office has not repeated a similar audit to assess the current situation, other – although less formal – sources suggest that the percentage of companies not publishing their financial statements remains significantly high.
In practice, not only registry courts are increasingly focusing on monitoring compliance with this obligation. For many companies today, the Commercial Register shows that proceedings have been initiated to dissolve the business corporation, precisely due to the absence of financial statements in the Collection of Deeds.
